Tc Energy Corporation ((TSE:TRP)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call from TC Energy Corporation revealed a robust performance, marked by significant achievements in safety, asset placement, and financial management. The company is benefiting from a supportive policy environment that promises future growth. While there were minor setbacks, such as temporary financial impacts from planned outages, these do not overshadow the overall positive trajectory of the company.
Safety and Operational Excellence
TC Energy has achieved a remarkable milestone with safety incident rates reaching a five-year low. This achievement is complemented by an 8% year-over-year increase in comparable EBITDA, showcasing the company’s commitment to operational excellence and financial growth.
Asset Placement and Budget Efficiency
The company successfully placed $8 billion worth of assets into service on schedule, managing to stay approximately 15% under budget. This efficiency in budget management highlights TC Energy’s strategic planning and execution capabilities.
New Growth Projects
TC Energy announced $700 million in new growth projects, focusing on power generation and data centers. This expansion aligns with the company’s strategy to diversify and strengthen its portfolio in emerging sectors.
Financial Outlook
Looking ahead, TC Energy expects its 2025 net capital expenditures to be at the lower end of the $5.5 billion to $6 billion range. The company also aims for a long-term target of 4.75x debt-to-EBITDA, reflecting its prudent financial management.
Supportive Policy Environment
The policy environment across North America is becoming increasingly supportive, which is improving regulatory processes and facilitating project delivery. This favorable climate is expected to bolster TC Energy’s growth prospects.
Record Natural Gas Demand
In 2025, TC Energy set 14 new natural gas pipeline flow records, indicating a significant increase in demand. This trend is expected to continue, driven by electrification and LNG exports.
Strong Project Execution
The company demonstrated strong project execution, with 23 out of 25 sanctioned projects delivered on or ahead of schedule and tracking 15% under budget for the year.
Bruce Power Financial Performance
Equity income from Bruce Power was lower quarter-over-quarter due to planned outages, which impacted short-term financial results. However, this is seen as a temporary setback in an otherwise strong performance.
Regulatory Challenges
Despite improvements, regulatory environments still pose challenges in terms of project execution timelines. TC Energy continues to navigate these hurdles to ensure timely project completion.
Forward-Looking Guidance
During the earnings call, CEO Francois Poirier provided forward-looking guidance, highlighting an 8% increase in comparable EBITDA for the first nine months of 2025. The company placed $8 billion in assets into service on schedule and announced $700 million in new growth projects. TC Energy anticipates 2025 net capital expenditures to be at the low end of their $5.5 billion to $6 billion range and aims for a long-term target of 4.75x debt-to-EBITDA. An upward revision in North American natural gas demand forecast by 5 Bcf/day was also noted, driven by electrification and LNG exports.
In conclusion, TC Energy Corporation’s earnings call conveyed a positive outlook, underscored by strong performance metrics and strategic growth initiatives. The company’s focus on safety, operational excellence, and financial prudence positions it well for future success, despite minor regulatory challenges and temporary financial impacts. Investors and stakeholders can remain optimistic about TC Energy’s trajectory in the coming years.